PPI and Claims Advisory Group...

A question about : PPI and Claims Advisory Group...

Hi All,

I'm new here and desperately seeking advice so I really hope someone is able to help me.

I am one of the muppets who fell for the Claims Advisory Group pitch and completed the initial lot of forms that they sent. I don't remember completing anything else and I am unclear (can't remember as it was so long ago) whether I have signed the doc that gives them permission to approach the FOS on your behalf - I guess I could find this out by submitted a personal Data request to them under the Data Protection act?? I have many blank copies of requests asking me to sign this form (which I haven't returned) but they constantly send duplicates and I just can't remember if I ever did sign one or not.

My bank sent me a letter saying they would only deal with CAG if I signed the form they sent me stating that CAG would act on my behalf. I did not sign this form. So all communication has been with me directly and not included CAG at all.

Anyway, as it happens I have been successful in my claim and I don't want to part with any of this to CAG - [TEXT DELETED BY FORUM TEAM] all they have done is submitted the forms which if I had been a bit more 'with it', I would have done myself for free!! They have not negotiated any terms with my bank therefore can I argue that there is no consideration on the contract? Particularly if I didn't sign the FOS form in the first place?

I know I've been really stupid - to be honest, I never thought I would be successful but I have. I just want to know if there is a getout from this. I am also going to speak to Citizens advice but if anyone can help here I would be immensely grateful.

Many thanks for reading.

Best answers:

• You contracted them to provide a service, therefore they should be paid for that service as you agreed.
  Whilst i have no time for CMC's, if you ask them to do something, then they shoudl be paid for that.
• Thanks for your help.
  They cold called - I didn't approach them but I appreciate there is really no difference in the contracting scheme of things! I also understand that I have contracted them to provide a service and I don't have an issue paying for this - IF they have actually earned provided the service they promised which was to negotiate a settlement on my behalf... But if I haven't signed the FOS form requesting permission from me for CAG to act on my behalf then I haven't given them permission to act on my behalf (they are chasing me for this form).
  If I didn't sign the Ombudsmen letter, my understanding is that they do not have any authority at all to act on my behalf.
  They won't have been able to deal with my bank as I didn't sign the letter from my bank asking me to authorise this - and the letter from the bank stated that if they didn't hear from me, they would only deal with me directly.
  Therefore, what actually constitutes their 'service' other than posting the forms?
  And does 'reasonable' charges as listed on the MOJ website come into play here? I wouldn't consider 40% to be a 'reasonable' fee for sending a few forms off! Their customer service is pretty poor too. I guess I could just complain to CAG and then follow it up with the MOJ if they don't lower their fee.
  If I have to pay, I will but I want to make absolutely sure that I have no other option first.
• The reasonable charge point only really comes into play if you cancel the contract with the CMC
  As you demonstrate by the 40% comment, you enetered the contract with CAdvisoryG in full knowledge of the charge, so you will have to pay it unfortunately
• Hi Scammed25,
  I'm in exactly the same position, just recieved a cheque but dont agree with paying claims advisory group 39% please please can you let me know if you find a way out of paying them this? I'd happily pay them Ј20-Ј30 for there help but 39% is way too much :s I'm an idiot i didn't even realise they took that much, to be honest I didn't even think I would win any of my PPI back!!
  please message me and let me know what you do either way pay it or not pay it.... what can they do to us if we don't pay it anyone know?
• Thanks Geraldine.
  I would like to complain - like you I have no issue with paying them some sort of fee but 40% is extortionate for what they actually do. I am looking to complain but I am worried that they will try and add interest on while the complaint is in progress.
  It doesn't look hopeful to be honest with what people have said here but I am still going to call Citizens Advice and see what my options are. I will keep you posted!
• Hi Scammed25 and geraldineo,I think you are in the same position as alot of people. What the company have done is not really scamming [TEXT DELETED BY FORUM TEAM]. If they were scamming people they would be prosecuted through the criminal justice system for fraud but actually they are providing is exactly the service they say they do just at a very high cost and the law rarely defends ignorance. Im not defending them in any way shape or form but the issue you now have is contractual, this is notoriously a nightmare to get out of as there are only 4 things that can lead to a contract ending, these are:
  Performance - When the parties to the contract completely fulfil their obligations to one another, whether by payment of money or by doing something as agreed in the contract, the contract comes to an end.
  Agreement - both parties agree to end the contract
  F -Frustrated - When it subsequently becomes impossible for one party to fulfil their obligation under the contract
  B - Breach - one or both of the parties has breached the agreement.
  The financial ombudsman may be able to help, they will take into consideration the relevant law, good industry practise and what is fair and reasonable in the all the circumstances.
  The first thing this company seem to be doing is allot of cold calling with very enthusiastic and often pushy sales personnel, once you say you are interested they will send you paperwork for you to sign and return. If you have not signed or returned this initial paperwork then no contract exists however if you did sign this and send it back then you have much more of a problem as that was the contract. CMG is regulated by MOJ but from what I understand it is taking them a very long to process claims against the company. The director of this company is also involved in 6 other companies [TEXT DELETED BY FORUM TEAM] he is not an idiot and seems to be doing things in accordance with consumer law so its unlikely claims will be upheld as they do make their commission charges clear. Interestingly tho they are not allowed to cold call according to the MOJ terms so you may have a complaint in respect to this but it would probably have little effect on the contract re the commission charges. It is a nightmare and this company was called Claims Group Direct Limited up until 18/11/2009. It appears they changed their name and often use the abbreviation CAG to escape bad press.
  I wish you the best of luck with your complaint and fingers crossed that the government pass some laws preventing these [TEXT DELETED BY FORUM TEAM] merchants from operating.
• Thanks Kelly 993 - that was really helpful. I appreciate they are technically 'above board' and its just sharp practise rather than actually scamming but even so, I can't believe they can get away with this.
  Hey ho - its looking like I will have to pay but I am so cross about it - entirely my fault as I should have checked it out in the first but hindsight is a beautiful thing and all that...
• I have also fallen for this scam. About a month ago someone from CAG rang me and told me I had a claim for mis-sold PPI on my personal loan and credit card. They had all my details knew about my personal loan and credit card and they even knew I was on a debt management plan. They sent me some forms to sign, the day after I received the forms CAG rang me again and seemed very keen for me to sign them and send them back to CAG. I signed the forms and sent them back to CAG.
  About a week ago CAG wrote to me and sent me another form to sign and asked me for a copy of my credit card statemet so they could verify my account number for my claim. I signed the form and sent it back to them, unfortunately I have sent them a copy of my credit statement with my credit card details on.
  Should I inform my bank and cancel my credit card. I am somewhat bewildered as to how they found out I had a credit card and personal loan and that I am on a debt management programme.
  I will also be speaking to CAB for some advice and to find out my options.
• They informed me that If I win my claim they will deduct 39% charges from whatever I get back and the rest will go towards paying off my loan or credit card.
  They also said it's no win no fee.
  shaz
  x
• Although the Financial Ombudsman Service has no jurisdiction over CMCs it has, to its credit, reported some to the MOJ for this behaviour so if you do take a complaint along these lines to the MOJ it is likely to be considered sympathetically.
• Thank you magpiecottage and dunstonh.
  Sound advice you have both given me. Really helpful.
  Thanks
  Shaz
  x
• I have just realised something.
  If you look at the MOJ Conduct of Authorised Persons Rules 2007, it says, under Client Specific Rule 7, on page 7, "Use of the expression "no win no fee" must be in accordance with the CAP
  HelpNote on “No Win No Fee claims”.
  Unfortunately the MOJ's link to CAP doesn't work but this one does. Key to this is that "The ASA has upheld complaints against firms claiming 'No Win, No Fee' because, unqualified, it implied the client would be liable for no costs whatsoever."
  However the current version of Claims Advisory Group's Brocuhure, (version number 4, published May 2011) is quite explicit that it is No Win No Fee but makes no reference to costs that might be incurred). Therefore, I think you can argue in such circumstances, it would be possible to make any additional costs unenforcible.
• Thank you magpiecottage for useful information you have given me.
  I am going to got o the CAB tomorrow and make a complaint to CAG [TEXT DELETED BY FORUM TEAM].
  Shaz
  x
• Hi All
  I've just had another thought about about CAG and PPI claims.
  Has it occured to anyone how they are finding out how much PPI peple have on their credit card/loan, because I contacted my bank (halifax) yesterday, and they said CAG have not contacted them, and furthermore they will not deal with them unless I sign something first. The chances are if one bank won't deal with them no bank will, so how can they possibly know how much PPI people have on their credit cards and send cheques to people. Either they are obtaining information illegally or they are making it up just to get money out of people.
  Shaz
  x